Published on: September 30, 2025, 08:13h.
Updated on: September 30, 2025, 08:15h.
- Kansas legislators are contemplating a tax hike on sportsbooks
- Kansas currently taxes sports betting revenue at a rate of 10%
- This 10% sportsbook tax positions Kansas among the lowest in the U.S.
The prospect of an increase in Kansas sports betting taxes is on the table, as lawmakers in Topeka aim to capture a larger share of the revenue generated from expanded gambling.
In 2022, Kansas approved both in-person and mobile sports betting at its four licensed casinos.
Under existing sports betting regulations, operators are required to submit 10% of their net income—calculated after paying winning wagers—to the state. Additionally, Kansas sportsbooks contribute a federal excise tax of 0.25% on each bet placed.
The licenses issued in 2022 come with a five-year validity period, ending in August 2027. Earlier this year, legislators imposed a freeze on the automatic renewal of these licenses, citing the need for higher taxes.
Intense Discussion
Recently, the Kansas Legislature conducted a public hearing to discuss the potential increase of the effective tax on sports betting revenue. State Representative Francis Awerkamp (R-St. Mary’s) asserts that the expansion of sports betting has mostly benefited casinos and external sportsbook operations, rather than the residents of Kansas.
“This has been a complete disappointment,” Awerkamp stated during the Federal and State Affairs Interim Committee meeting.
Conversely, John Pappas, a lobbyist representing sports betting and online gaming interests, described the Kansas sports betting landscape as a “success narrative.” A balanced tax rate has empowered sportsbooks to present competitive odds and promotions, encouraging bettors to choose regulated establishments over illegal offshore books or local bookies without any consumer protection.
“I guess we support different constituents,” Awerkamp replied. “You represent your clients. I represent the citizens of my district—the people of Kansas.”
With a 10% flat tax rate on sports betting income—across both retail and online platforms—Kansas falls on the lower end of the scale compared to 39 states and Washington, D.C., with legal sports gambling. The lowest rate can be found in Nevada at 6.75%, while New York, New Hampshire, and Rhode Island impose the highest rate at 51%.
In 2024, the state’s sports betting revenue reached $216.7 million, representing nearly a 19% increase from the previous year. Almost all of this revenue, at nearly 99%, stemmed from mobile bets. Kansas’ share of this amount was less than $22 million.
In contrast, Kansas taxes all other forms of commercial casino revenue at 27%, generating over $100 million in state income. It is important to note that the state’s tribal casinos remain free from state taxation.
Concerns Over Offshore Betting
Kansas is not alone in its deliberations regarding increased taxation on sportsbooks. Over the past year, Illinois has raised its effective tax rate on sports betting revenue twice, implementing a per-bet charge of 20 cents that escalates to 50 cents for licensees with more than 20 million bets in a year.
New Jersey has increased its online sports betting tax this year from 15% to 19.75%. Initially, the tax on sportsbooks was set at 13% when sports betting first launched in 2018.
Additionally, Louisiana increased its sports betting tax from 5% to 21.5% this year.
Consumer advocacy groups express concern that increasing state taxes may lead bettors back to illegal offshore operators and local bookies. Heightened taxes often result in transferred costs to consumers, manifested in tighter odds or reduced promotions and incentives to retain their clientele.